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The following is an aging schedule for a company's accounts receivable as at December 31, 2019: Number of days past due Total amount Current (not
The following is an aging schedule for a company's accounts receivable as at December 31, 2019: Number of days past due Total amount Current (not Customer's name owed yet due) 1-30 31-60 61-90 Over 90 Aber $29,000 $9,000 $20,000 Bohr 30,000 $30,000 Chow 40,000 15,000 10,000 $15,000 Datz 22,000 $22,000 Others 158,000 95,000 15,000 13,000 15,000 20,000 $279,000 $140,000 $34,000 $33,000 $30,000 $42,000 Estimated percentage 3% 6% 10% 25% 50% that will be uncollectible Estimated value $38,040 $4,200 $2,040 $3,300 $7,500 $21,000 of uncollectibles On December 31, 2019, the unadjusted balance in the Allowance for Doubtful Accounts (prior to the aging analysis) was a credit of $19,000. Journalize the adjusting entry for bad debts on December 31, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit Journalize the following selected events and transactions in 2020: (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) 1. On March 1, an $800 customer account that originated in 2020 is judged uncollectible. ii On September 1, an $800 cheque is received from the customer whose account was written off as uncollectible on March 1. Date Account Titles and Explanation 2020 Mar. 1 Sept. 1 (To reinstate an account that was previously written off) (To record recovery of account that was previously written off) Debit Credit Journalize the adjusting entry for bad debts on December 31, 2020, assuming that the unadjusted balance in Allowance for Doubtful Accounts at that time is a debit of $1,000 and an aging schedule indicates that the estimated value of uncollectibles is $36,500. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Dec. 31 Account Titles and Explanation Debit Credit
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